Currencies
- The euro lost a big proportion of last week’s gains and dropped from 1.3668 down to 1.3581 against the US dollar . The euro is set to weaken after the statements of Mario Draghi last week and the reduction of the refinancing and deposit rate to record lows.
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The US dollar continues its drop for another day and is now trading around the level of 102.30 against the Japanese yen. The yen is getting stronger as the Bank of Japan will meet this week.
Equities
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The European indices climbed after the ECB announced its monetary easing plan last week, with the DAX closed above the all-time high level of 10,000 adding optimism for the German economy.
Commodities
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Platinum climbed from 1441 all the way up to 1456 US dollars per ounce. The metal advanced as the platinum companies will consider their options after a failure of talks with the government.
Mover & Shaker with FX Options
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The British pound range bound between 1.6779 and 1.6844 against the US dollar, as it erased previous week’s losses. The pair is trading around 1.6806 and the UK Manufacturing Production month to month will be revealed at 08:30 GMT, with expectations at 0.4%.
- Option traders may consider constructing a Bull Call Spread strategy on GBP/USD and gain if the pair continues the upside, while the risk is limited to the premium paid.
- A Bull Call Spread can be constructed by purchasing an in-the-money Call and selling out an out-the-money Call.
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